![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/logo-mastercard.png)
Mastercard
Chargeback Reason Codes
Got a Mastercard chargeback notification? If so, the message probably included a numeric indicator called a dispute reason code.
The reason code is meant to give you insight into the reason behind why the cardholder (or the cardholder's bank) is disputing the charge. As the name suggests, this code aims to assist in comprehending the cause for the chargeback, letting you analyze the situation and figure out an appropriate response, then later deploy preventative measures to stop future disputes.
The reason codes used for chargeback are unique to each card network, though. And, the rules and procedures can differ significantly from one reason code to the next. Time limits, required documentation, and response acceptance criteria may vary depending on the nature of the dispute being raised.
Mastercard, for instance, subdivides their reason codes into a few primary categories. Authorization and point-of-interaction errors are two categories, plus cardholder authorization and cardholder disputes, along with a few others. These chargebacks can get handled in totally different ways, depending on the reason code.
Learn more about Mastercard chargeback workflows
No worries, though; below, we’ve compiled a complete list of current Mastercard chargeback reason codes, and provided a breakdown of what each code means. We’ll give you the time limits, acceptable evidence, and all the information you’ll need to figure out the cause of a dispute and how to submit a winning response.
![Chargeback Reason Codes Cheat Sheets](https://chargebacks911.com/wp-content/themes/CB911/assets/img/pages/reason-codes/cheat-sheets-shortcode.png)
Confused by Chargeback Reason Codes?
Download our convenient quick reference cheat sheets
Authorization-Related Chargebacks
The following reason codes are used when an error was made in the process of requesting authorization for a transaction. These claims are all represented by reason code 4808. In other words, if you receive a chargeback with reason code 4808, one of the following should be the reason for the dispute:
Required Authorization Not Obtained
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4808
Required Authorization Not Obtained
Description
Authorization was required to complete a transaction, but an authorization response was not properly obtained.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
This is usually received for one of three reasons: you never obtained authorization for a transaction; you processed a transaction for an amount greater than what was authorized; or, you did not submit a transaction for processing in time before an authorization expired.
How to Respond
Submit evidence from your processor demonstrating that the transaction received authorization.
Prevention Steps
- Confirm authorization on all transactions
- Make sure terminal are chip-compliant
- Do not override declined transactions
Expired Chargeback Protection Period
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4808
Expired Chargeback Protection Period
Description
A transaction was processed, but the issuer had already permanently closed the account in question, or it was not in good standing.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
You’re located in Europe, and the issuer permanently closed the account before the chargeback was issued. Or, the issuer deemed the account not to be in good standing before the chargeback was issued. In addition, another of several conditions is also true; for instance, the authorization was not identified as a preauthorization, and the transaction was presented more than seven calendar days after the authorization approval date.
How to Respond
You can provide proof that the initial transaction date for processing was incorrect, or present a copy of the receipt demonstrating that the transaction was finalized before the account was closed.
Prevention Steps
- Always request authorization before processing a transaction
- Settle pre-authorized transactions within 30 calendar days of the latest authorization date
- Settle any transaction that are not pre-authorized within seven calendar days of the authorization date
Multiple Authorization Requests
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4808
Multiple Authorization Requests
Description
A card-not-present transaction was declined, but later approved in Stand-In or X-Code.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
There are times when banks can't provide a real-time response to an authorization request. X-Code and Stand-In are backup processing services for these situations. A reason code filed using this reason means the transaction was initially declined, but was falsely approved using one of the services mentioned.
How to Respond
Provide proof that you did not seek authorization for the transaction through X-Code or Stand-In.
Prevention Steps
- Always request authorization before processing a transaction
- Terminate any declined transactions and request an alternate method of payment
- Adhere to Mastercard rules and regulations
CAT 3 Device
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4808
CAT 3 Device
Description
A transaction is processed through a merchant’s level three cardholder-activated terminal (CAT), but either the card was not valid at the time, or the transaction amount was more than the acceptable limit.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
Terminals with a level 3 designation are required to electronically cross-reference the account number of the transaction against the Electronic Warning Bulletin file (if it is enabled). If the transaction is processed with a bad account number, it will typically result in a CAT 3 device chargeback. The same is true if the transaction exceeds the acceptable limit.
How to Respond
Submit evidence from your processor demonstrating that the transaction received authorization.
Prevention Steps
- Always request authorization before processing a transaction
- Terminate any declined transactions and request an alternate method of payment
- Adhere to Mastercard rules and regulations
Transit First Ride Risk (FRR) Claims
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4808
Transit First Ride Risk (FRR) Claims
Description
The issuer declined a contactless transit aggregated transaction. Or, the merchant didn’t fulfill the criteria for submitting an FRR claim transaction, or submitted an FRR claim transaction more than once.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The original transit transaction declined by the issuer was not identified as a contactless transit aggregated transaction. Or, you submitted an FRR claim transaction, but did not fulfill the criteria for said transaction. Or, the FRR claim transaction exceeded the limit amount in the relevant country.
How to Respond
Submit evidence from your processor demonstrating that the transaction received authorization.
Prevention Steps
- Send a properly identified Authorization Request/0100 message
- Ensure proper approval for the transaction is received
- Ensure combined amount of all contactless taps is equal to or less than the applicable contactless transit aggregated CVM limit amount
- Ensure the time between the first tap and the first presentment is less than 14 calendar days
Point-of-Interaction Error Chargebacks
All the following reason codes apply to errors made in processing a transaction. These claims are all represented by reason code 4834. If you receive a chargeback with reason code 4834, one of the following should be the reason for the dispute:
Cardholder Debited More than Once for the Same Goods or Services
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4834
Cardholder Debited More than Once for the Same Goods or Services
Description
A single transaction was processed more than one time.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant submitted a single batch of transactions multiple times; the merchant deposited both copies of the sales receipt (merchant and sales copy); the merchant created two sales receipts for a single transaction; the merchant deposited a receipt with more than one acquirer; the merchant processed a single transaction multiple times on same card or to another payment method.
How to Respond
The merchant should submit relevant documentation, such as proof of a single valid transaction or evidence demonstrating no duplication occurred. This information can be provided through the acquirer’s dispute resolution platform.
Prevention Steps
- Review transaction receipts before depositing
- Submit a batch only one time
- Credit any duplicate transactions
- Deposit receipts with only one acquirer
- Train staff on the proper procedures for handling credits
Transaction Amount Differs
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4834
Transaction Amount Differs
Description
The amount the cardholder was charged doesn’t match what’s on the receipt.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant made an error when calculating the transaction amount; the merchant increased or otherwise altered the amount after the transaction was completed (without the cardholder’s permission).
How to Respond
The merchant can submit a copy of the signed receipt, an invoice, or any correspondence with the cardholder that confirms the agreed-upon transaction amount.
Prevention Steps
- Double check calculations and the final transaction amount before processing
- Don’t change the transaction amount without the cardholder’s consent
- Void any transactions if the cardholder wishes to use a different payment method
ATM Disputes
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4834
ATM Disputes
Description
The cardholder charges that inaccurate amount of cash was dispensed by an ATM, or that the ATM withdrawal had been debited to the account multiple times.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
ATM mechanical issues; for instance, the machine dispensed some (or none) of the funds requested due to a malfunction. Or, the machine debited the cardholder more than once for the same transaction due to a software bug.
How to Respond
Include ATM logs, receipts, or transaction records that confirm the correct dispensation of funds.
Prevention Steps
- Reconcile ATMs in a timely manner
- Report out-of-balance or miscalibrated ATMs
Charges for Loss, Theft, or Damages
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4834
Charges for Loss, Theft, or Damages
Description
The cardholder claims an unauthorized charge for loss, theft, or damage was added to the transaction up front.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant processed a transaction which included an upfront charge for loss, theft, or damage, without the cardholder’s approval.
How to Respond
Provide documentation proving that the cardholder was informed of — and agreed to — the upfront charge. This may include a signed agreement, rental contract, or transaction receipt explicitly outlining the charges.
Prevention Steps
- Do not add damage charges to a transaction without the knowledge and agreement of the cardholder
- Clearly explain any circumstances which might trigger a charge for loss, theft, or damage
- If loss, theft, or damage charge is to be added, process the original transaction, then process a second transaction for any additional fees
Currency Errors
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4834
Currency Errors
Description
Dynamic Currency Conversion was performed, but the cardholder claims they did not consent to DCC. Or, that DCC was performed incorrectly.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The transaction amount is displayed in the local currency, but performed in the cardholder’s currency; the cardholder chooses local currency, but the transaction is performed in the cardholder’s currency; currency conversion was performed at the wrong exchange rate.
How to Respond
If the cardholder asserts that they did not agree to Dynamic Currency Conversion, you must supply proof that the cardholder consciously opted for DCC. Additionally, you may include a copy of the transaction receipt as evidence.
Prevention Steps
- Inform cardholders of the use of currency conversion and applicable fees
- Always give the cardholder the option to make the purchase using local currency
- Train your sales staff on proper procedures for transaction using a different currency
Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange Loss
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4834
Merchant Credit Correcting Error Resulting in Cardholder Currency Exchange Loss
Description
The merchant issued a credit to address an error, rather than performing a reversal, which led to the cardholder incurring a loss due to currency exchange.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The cardholder was entitled to a transaction reversal. In response, the merchant credited the cardholder’s account. However, because of a currency exchange, the cardholder was credited for an amount less than the amount owed.
How to Respond
Provide documentation proving that the credit issued matches the amount originally debited, accounting for any potential discrepancies in currency exchange. This could include transaction receipts, refund confirmations, and evidence of the exchange rates applied at the time of processing.
Prevention Steps
- Inform cardholders of the use of currency conversion and applicable fees
- Always give the cardholder the option to make the purchase using local currency
- Train your sales staff on proper procedures for transaction using a different currency
Improper Merchant Surcharge
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4834
Improper Merchant Surcharge
Description
A merchant applied a surcharge to the total transaction amount. However, this surcharge was against card network rules or local law.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
A surcharge was applied to a transaction improperly, and the transaction was either a domestic transaction within Canada, a domestic transaction within Europe, or an inter-European transaction.
How to Respond
Show evidence proving that the surcharge was applied in compliance with card network rules and local regulations. This evidence may include a signed agreement or documentation demonstrating clear disclosure of the surcharge to the cardholder before completing the transaction.
Prevention Steps
- Inform cardholders of the applicable rules and regulations regarding surcharges
- Conduct regular audits to ensure proper disclosure of surcharges to cardholders
Unreasonable Amount
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4834
Unreasonable Amount
Description
The exact transaction amount was not specified at the time of purchase, and the cardholder claims the transaction amount was unreasonable.
Time Limit
(Issuer/Cardholder)
90 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The charge was more than what the cardholder could reasonably have expected, taking into account the cardholder’s previous spending pattern and the conditions of the cardholder. In addition, the transaction took place in an applicable region (the EEA, Gibraltar, or the United Kingdom).
How to Respond
Provide documentation proving the transaction amount was disclosed and agreed to by the cardholder at the time of purchase. This may include signed agreements, receipts, or terms and conditions that detail the pricing. Additionally, any records showing prior similar transactions by the cardholder can help demonstrate the reasonability of the charge.
Prevention Steps
- Ensure that all pricing and fees are clearly disclosed to cardholders before completing the transaction
- Train employees on proper disclosure procedures to avoid misunderstandings with customers
- Keep accurate records of transactions and any agreements or contracts signed by the cardholder
Cardholder Dispute Chargeback
The subsequent reason codes apply to situations in which the cardholder challenges the transaction due to a specified reason. These claims are all represented by reason code 4853. In other words, if you receive a chargeback with reason code 4853, one of the following should be the reason for the dispute:
Goods or Services Were Either Not as Described or Defective
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Goods or Services Were Either Not as Described or Defective
Description
The cardholder claims the merchandise received (or service provided) differs greatly from the description provided at the time of purchase.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The card attempted to contact the merchant to address an issue or shortcoming with the goods purchased. But, you either failed to adjust the price, repair, or replace the goods, or to issue a credit to offset the cost.
How to Respond
Provide specific information to refute the cardholder’s claims. This can include invoice, contract, etc. Clearly address each point and complaint that the cardholder has made, and be aware that you may need a neutral third-party opinion in some cases. If the customer claims to have returned the merchandise, advise that you have not received the return yet, or show proof the cardholder agreed to a repair or replacement.
Prevention Steps
- Check all service and product descriptions for clarity and accuracy
- Immediately fulfill all valid requests for replacements or refunds
- Do not refer customers to the manufacturer in cases of damaged or defective goods
- Employ best practices for packing/shipping
Goods or Services Not Provided
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Goods or Services Not Provided
Description
The product never arrived, or the service wasn’t completed.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant failed to provide goods or services; the merchant has gone out of business or can no longer provide the goods or services for some other reason.
How to Respond
Show documentation proving that the cardholder (or another authorized person) received the merchandise as agreed. If the projected delivery date has not yet passed, then provide documentation showing that projected delivery date.
Prevention Steps
- Adhere to promised delivery dates
- Accurately describe the services that will be provided, including availability window
- Do not process the charge prior to order shipment
- Immediately advise customers of unforeseen delays (merchandise is out of stock, shipping delays, etc.)
Travel/Entertainment Services Not Provided/Not as Described and Merchant Voucher Issued
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Travel/Entertainment Services Not Provided/Not as Described and Merchant Voucher Issued
Description
The travel or entertainment service wasn't provided as promised, or the service was not as described. The merchant then issued a voucher for future use instead of providing a refund.
Time Limit
(Issuer/Cardholder)
- 120 days from original delivery or performance date; or
- 540 days from the Central Site Business Date of the original transaction (for US & Canada merchants only); or
- 120 days from the latest anticipated delivery or performance date
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant failed to provide the services as described or agreed upon, and instead offered a voucher for future use.
How to Respond
Provide proof that the cardholder used the voucher and received the promised services. If there were issues with the provided services, provide documentation showing how these issues were resolved. Show how compensation was given to the cardholder.
Prevention Steps
- Clearly describe the services that will be provided and any restrictions or limitations.
- Provide a confirmation of purchase to the cardholder outlining the date, time, location, and details of the service.
- Follow through with all promises made to the cardholder.
- Be transparent about any potential delays or changes in the service.
- Offer refunds instead of vouchers if unable to provide promised services.
Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Failed Travel Merchant-Intra-EEA and Domestic European Transactions Only
Description
A cardholder makes a purchase from a travel merchant located within the European Economic Area (EEA) or domestically in Europe, but service is not provided because the merchant is seeking protection from creditors, or is insolvent, bankrupt, or in liquidation.
Time Limit
(Issuer/Cardholder)
120 days (in most cases)
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant is facing financial problems and is unable to provide the services as promised. Or, the merchant has filed for bankruptcy or is in liquidation.
How to Respond
Provide proof of the merchant's insolvency or bankruptcy, such as official documents from relevant authorities. If the cardholder has already paid for the service, provide documentation showing how a refund was issued.
Prevention Steps
- Conduct due diligence and monitor any potential financial issues.
- Offer alternative options or refunds in case of insolvency or bankruptcy.
- Clearly communicate any changes in services or potential delays to cardholders.
Digital Goods Purchase of USD 25 or Less
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Digital Goods Purchase of USD 25 or Less
Description
A cardholder made an eCommerce purchase that was less than or equal to $25. But, the merchant didn’t offer purchase control settings to the cardholder. This is despite the cardholder having an account in good standing.
Time Limit
(Issuer/Cardholder)
120 days (in most cases)
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant accepted the customer’s card information. But, they failed to set the cardholder up with an account that allowed for minimum purchase controls and could be used for future digital goods purchases.
How to Respond
Show proof that the cardholder was provided with access to an account that allowed for minimum purchase controls, and that all digital goods were made available as promised.
Prevention Steps
- Disable purchases by default and require cardholders to opt-in for purchasing
- Require cardholders to provide authentication information before each purchase
- Time-out purchase ability after a set period of inactivity.
- Clearly show total transaction amounts for pending purchases and require cardholder confirmation
- Confirm purchases immediately via email or text
Credit Not Processed
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Credit Not Processed
Description
The cardholder did not receive an expected credit.
Time Limit
(Issuer/Cardholder)
- 120 days from the transaction date for a VAT credit; or
- Between 15 and 120 days from the credit documentation date, unless the 15-day delay would cause the buyer to exceed the 120-day limit; or
- Between 0 and 120 days if the buyer has valid documentation, like a letter from the merchant
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant did not acknowledge the return or cancellation; the merchant failed to process the credit or reversal; the merchant failed to fully explain the return/cancellation policy.
How to Respond
Provide the cardholder with proof of acknowledgement, processing and/or reversal of the credit. If necessary, provide an explanation of the return/cancellation policy to ensure clarity for future transactions.
Prevention Steps
- Process all qualified requests for cancellation or refund as soon as possible
- Clearly advise customers on no-return or limited return policies, including any fees
- For card-not-present transactions, require customer acknowledgment and confirmation action prior to final purchase
- Refuse delivery of any returns that do not adhere to your stated policy
- Advise the customer if the credit will be for a lesser amount, and explain why
Travel/Entertainment Services Cancelled/Returned and Credit Not Processed
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Travel/Entertainment Services Cancelled/Returned and Credit Not Processed
Description
A qualifying purchase (airline tickets, event tickets, etc.) was canceled. But, the merchant failed to provide a refund to the cardholder.
Time Limit
(Issuer/Cardholder)
Between 15 and 120 days from the credit documentation date (in most cases)
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant either ignored the cardholder’s request for a refund, or failed to respond in a timely manner.
How to Respond
If there were issues with the provided services, provide documentation showing how these issues were resolved. Either show that the booking in question was not canceled, or that compensation was given to the cardholder.
Prevention Steps
- Adhere to promised delivery dates
- Accurately describe the services that will be provided, including availability window
- Do not process the charge prior to order shipment
- Immediately advise customers of unforeseen delays (event cancelation, travel delays, etc.)
Counterfeit Goods
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Counterfeit Goods
Description
The cardholder received counterfeit merchandise.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant knowingly or unknowingly shipped goods that were not what they were claimed to be.
How to Respond
Provide specific information showing you didn’t misrepresent your terms or products. If the cardholder agreed to future transactions (trial periods, promotional periods, etc.), provide documentation showing the cardholder agreed to future transactions and that you notified the cardholder of an upcoming charge at least 7 days in advance.
Prevention Steps
- Order and sell only genuine merchandise
- Check to ensure that inventory is what it claims to be
- Double-check all product descriptions for accuracy
Cardholder Dispute of a Recurring Transaction
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Cardholder Dispute of a Recurring Transaction
Description
Cardholder claims the merchant continued to bill the card after a recurring transaction was cancelled, or without explicit consent from the cardholder.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
Cardholder did not understand the original terms of the transaction; cardholder received goods/used services after cancelling the recurring transaction; cardholder canceled too late to stop the transaction; merchant did not cancel the transaction.
How to Respond
Provide specific information to refute the cardholder’s claims. This can include invoice, contract, etc. Clearly address each point and complaint that the cardholder has made, and be aware that you may need a neutral third-party opinion in some cases. If the customer claims to have returned the merchandise, advise that you have not received the return yet, or show proof the cardholder agreed to a repair or replacement.
Prevention Steps
- Immediately fulfill qualified cancellation and/or non-renewal requests
- Confirm cancellations via email or text
- If a chargeback is issued, immediately cancel future transactions
Issuer Dispute of a Recurring Transaction
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Issuer Dispute of a Recurring Transaction
Description
The issuer previously notified the merchant to cancel the recurring transaction, but the merchant failed to do so.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The issuer sent the merchant a message, informing them of a cancelation of service. But, the merchant charged the account in question for a recurring charge anyway.
How to Respond
Provide documentation showing the request for cancellation was not submitted properly, or was submitted after the charge in question.
Prevention Steps
- Immediately fulfill qualified cancellation and/or non-renewal requests
- Confirm cancellations via email or text
- If a chargeback is issued, immediately cancel future transactions
Addendum Dispute
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Addendum Dispute
Description
A valid transaction was made. But, the cardholder disputes a separate transaction that occurred after that valid transaction.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
After a valid purchase, a subsequent transaction occurred with that same merchant, but without the cardholder’s consent. In other words, the merchant added an additional charge without informing the cardholder.
How to Respond
Provide documentation confirming the cardholder's acknowledgment or consent for the disputed transaction.
Prevention Steps
- Clearly explain all terms and conditions and costs prior to finalizing
- Respond to cancellation requests in a timely manner, and confirm with the cardholder
- Train staff members on the correct ways to handle cancellations or reservation changes
"No-Show" Hotel Charge
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
"No-Show" Hotel Charge
Description
The cardholder claims to have been charged a no show fee when they cancelled with the hotel participating in the Mastercard Guaranteed Reservation Service.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The lodging merchant (typically a hotel) added a “no-show” fee to the original transaction without informing the cardholder.
How to Respond
Merchants should first verify whether the cardholder's cancellation request was received and documented prior to the reservation date. If the cancellation was properly processed and confirmed within the allowed timeframe, the merchant should provide supporting evidence to the acquirer, including the cancellation reference number or email confirmation.
Prevention Steps
- Clearly explain all no-show/cancellation terms and costs prior to finalizing the reservation
- Respond to cancellation requests in a timely manner, and confirm with the cardholder
- Train staff members on the correct ways to handle cancellations or reservation changes
Transaction Did Not Complete
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Transaction Did Not Complete
Description
Merchandise or services were not used by the purchaser, who believed the transaction was not actually processed.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The cardholder believed that goods or services were not provided (and therefore were not used) because the transaction was never processed.
How to Respond
Confirm whether the transaction was processed by reviewing your records and system logs. Provide clear evidence, such as transaction receipts or confirmation emails, to demonstrate that the services or merchandise were indeed available for the cardholder.
Prevention Steps
- Always confirm transactions via text or email
Timeshares
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Timeshares
Description
The cardholder claims to have canceled a timeshare (or similar provision of services) within the time frame required under Mastercard rules.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The cardholder canceled a timeshare membership, but was charged the cost of the timeshare anyway.
How to Respond
Provide evidence that the timeshare cancellation request was not submitted within the required timeframe, or that the cancellation terms were not met. Include documentation like signed agreements, cancellation policies, and any correspondence with the cardholder. You can also supply proof that the charges were valid, such as receipts or records of services rendered during the disputed period.
Prevention Steps
- Outline cancellation policies and procedures in writing
- Keep thorough records of all transactions and communication with cardholders
- Give a prompt response to any cancellation requests
- Offer a grace period for cancellations after the required timeframe has passed, as a gesture of good customer service
Credit Posted as a Purchase
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4853
Credit Posted as a Purchase
Description
A credit was supposed to be provided to the cardholder. But, the merchant processed the credit as a debit to the cardholder’s account instead.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant (knowingly or unknowingly) processed a sale which should have been processed as a credit back to the cardholder.
How to Respond
The merchant should provide documentation demonstrating the proper resolution of the transaction. This includes submitting evidence, such as receipts or communication records, showing that the credit was either issued correctly or that an error has been rectified.
Prevention Steps
- Train staff on the proper procedures for processing credits
- Ensure system messages are coded and submitted correctly
Fraud-Related Chargeback
The subsequent reason codes apply to situations in which the cardholder challenges the transaction due to unauthorized activity (i.e. fraud):
No Cardholder Authorization
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4837
No Cardholder Authorization
Description
The cardholder claims he or she did not authorize the transaction.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The transaction was made by someone who had fraudulently obtained the account information; the cardholder didn’t recognize the transaction (billing descriptor) on the credit card statement; a family member used the account without the primary cardholder’s knowledge.
How to Respond
The merchant should provide compelling evidence that the transaction was authorized. This may include documentation such as a signed receipt, proof of delivery, or any correspondence with the cardholder confirming the purchase.
Prevention Steps
- Create clear billing descriptors
- Do not accept expired cards under any circumstances
- Obtain secondary validation (PIN, signature, imprint etc.)
- Do not override declined transactions
- Train staff on the proper procedures for handling terminal issues
Questionable Merchant Activity
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4849
Questionable Merchant Activity
Description
This transaction violates Mastercard’s rules or the merchant was on a Mastercard security list.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The acquirer processed a transaction for a merchant that later was listed in a MasterCard Global Security Bulletin for violating QMAP.
How to Respond
The merchant must provide evidence that they were not in the QMAP at the time of the transaction, and that the transaction in question was legitimate and complied with Mastercard's rules. This could include presenting transaction records, proof of delivery, or customer communication demonstrating agreement to the purchase.
Prevention Steps
- Maintain accurate records
- Check transactions against the Mastercard Global Security Bulletin list
Chip Liability Shift
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4870
Chip Liability Shift
Description
A fraudulent transaction was processed using a counterfeit EMV chip card, but the chip was not used, which allowed fraud.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The use of an EMV chip card resulted in a fraudulent transaction at a non-hybrid terminal; the use of an EMV chip card resulted in a fraudulent transaction at a hybrid terminal (with or without a PIN pad).
How to Respond
A merchant can provide evidence that the transaction was processed correctly and that the EMV chip card was used at a compliant terminal. Documentation such as transaction logs, authorization records, and photos of the terminal setup can help support their case.
Prevention Steps
- Upgrade to compliant terminals
- Make sure to obtain the correct Cardholder Verification Method (CVM), such as a signature or PIN
- Take an imprint (either electronic or manual) for every card-present transaction where a chip card is not used
Chip Liability Shift — Lost/Stolen/Never Received Issue (NRI) Fraud
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4871
Chip Liability Shift — Lost/Stolen/Never Received Issue (NRI) Fraud
Description
A fraudulent transaction was processed using a lost, stolen, or never received EMV chip card, but the chip was not used, which allowed the fraud.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The use of an EMV chip card resulted in a fraudulent transaction at a non-hybrid terminal; the use of an EMV chip card resulted in a fraudulent transaction at a hybrid terminal (with or without a PIN pad).
How to Respond
The merchant should provide documentation proving the transaction was processed correctly and in compliance with EMV standards. This may include evidence that the cardholder was present and authorized the transaction, such as a signed receipt or video footage.
Prevention Steps
- Upgrade to compliant terminals
- Make sure to obtain the correct Cardholder Verification Method (CVM), such as a signature or PIN
- Take an imprint (either electronic or manual) for every card-present transaction where a chip card is not used
Miscellaneous Chargebacks
The following reason codes can be applied under select circumstances, as outlined in the Mastercard Chargeback Guide Merchant Edition
Installment Billing Dispute
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4850
Installment Billing Dispute
Description
The cardholder claims an installment charge made to their account was incorrect.
Time Limit
(Issuer/Cardholder)
120 days
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant charged the cardholder prematurely; the merchant charged the cardholder the incorrect amount, or the transaction was not an installment.
How to Respond
Give clear evidence supporting the validity of the transaction. This may include a copy of the installment agreement, proof of proper billing according to the agreed terms, and evidence that the amount charged matches the agreed installment schedule.
Prevention Steps
- Make sure you bill the cardholder installment transactions correctly as agreed
- Train staff on importance of accuracy
Cardholder Dispute Not Classified Elsewhere (US)
![Mastercard](https://chargebacks911.com/wp-content/themes/CB911/dist/img/pages/cbrc/icon-mastercard.png)
4854
Cardholder Dispute Not Classified Elsewhere (US)
Description
The cardholder has made an unsuccessful good-faith effort to resolve a dispute with the merchant.
Time Limit
(Issuer/Cardholder)
120 calendar days, or 60 calendar days from first learning about the dispute from the cardholder
Time Limit
(Acquirer/Merchant)
45 days
Typical Causes
The merchant did not resolve the issue, or did not resolve the issue in a timely manner; the cardholder is making a fraudulent claim.
How to Respond
Gather and submit any relevant documentation, such as proof of delivery, correspondence with the cardholder, or evidence of the agreed terms and conditions, depending on the claim made.
Prevention Steps
- Resolve all customer complaints as quickly as possible
As mentioned at the beginning of the section, reason codes can be helpful, but they don’t offer much insight into the true source of chargebacks. Chargebacks911® combines innovative technology and human expertise to identify chargeback sources and assemble winning cases.
You don’t need to rely on Mastercard chargeback reason codes. Chargebacks911 is the answer for genuine, long-term chargeback reduction. Click here to learn more.